HMRC continues digital transformation drive with Capgemini AI deal

HM Revenue & Customs (HMRC) has signed up Capgemini, NiCE, and Route 101 to overhaul its customer service operations as part of a shift to digitize operations.

The multi-year contract sees an expansion of self-service options and increased use of AI, with the aim of making it easier for customers to get the information and support they need.

HMRC’s legacy infrastructure and existing products will be consolidated into a unified, cloud native platform which Capgemini said will improve digital experiences and automation, with more seamless customer interactions.

Capgemini – which already has long-standing ties with HMRC – will handle the implementation, system design, workflow integration, ongoing support, and continuous optimization to enable greater adaptability.

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“This new agreement reflects the strength of our long-standing commitment to HMRC innovation and our ability to deliver complex, large-scale, AI-powered transformation programs that create tangible value for citizens," said Rob Walker, managing director of Capgemini in the UK.

"In collaboration with HMRC, NiCE and Route 101, we are building a value partnership that goes beyond technology delivery – one that is focused on long-term outcomes, innovation, and continuous improvement for millions of users across the UK.”

HMRC targets CX improvements

Meanwhile, NiCE CXone, an AI-powered customer experience platform, will be used to manage intelligent self-service, streamline complex enquiries, and provide real-time, AI-driven insights to contact center operations.

“HMRC serves every taxpayer in the United Kingdom, and the scale and importance of its contact center operations demand a platform built for enterprise-grade performance, security, and AI-led innovation," said Darren Rushworth, president of NiCE International.

"CXone is uniquely positioned to deliver on that mandate, helping HMRC modernize service delivery and raise the bar for citizen experience."

Customer experience firm Route 101 will also provide professional services to implement the changes and supply critical telephony infrastructure through its communications provider, Gamma.

According to Capgemini, UK taxpayers will gain an intuitive, reliable, and responsive service to get the support they need, along with streamlined customer journeys and reduced waiting times.

The deal forms part of a long-running push by the tax office to replace ageing systems. In 2024, for example, HMRC announced plans to scrap existing telephone helpline systems and replace them with a new contact center as a service (CCaaS) platform, offering both voice and webchat support.

Last month, it signed a £175 million deal with UK AI firm Quantexa to modernize its infrastructure with a data unification platform and accelerate future AI adoption.

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